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Video: Payments for Ecosystem Services (PES)

Payments for Ecosystem Services (PES) are of increasing political interest as this approach helps preserve ecosystems and the goods and services they provide. Despite the valid global debate on pros and cons of this scheme, we believe that PES has compelling potential in helping to reduce negative impacts on the environment. For the proper synthesis of a functioning concept, certain prerequisites should be embodied such as legislation and institutional framework, property rights, contract designs etc.

Even though this concept has been in practice since the 80s, it is still a relatively new instrument for many parts of the world. It is believed that the main barriers beneficial participation from ecosystem markets is the general lack of awareness about what ecosystem services and how payment and compensation schemes work. There is also insufficient local capacity of communities and other rural landowners to identify, approach and close deals with buyers of ecosystem services.